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Quantitative analysis in budgeting (high-low method)

IImperio10y ago
Hi sir I watched the lecture related to this topic and while you did the example question and got the total cost equation as TC= 32500 + 75x. This equation gives the total cost for the highest and lowest level of activity. However, when I use this equation to find the total cost of another activity level, say for example 400 units, the answer I get does not match to the cost given in the question For 400 units, in the question, the cost is 65,000. But when I insert this into the equation, 32500+(400x75) = 62,500. Can you please explain? Thanks in advance
IImperio10y ago#1
Oh dear, I only watched part of the video. Sorry, I got it now Heheh.
John MoffatJohn MoffatTutor10y ago#2
I am pleased you have now got it :-)
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